Govt loses Rs 4.18 lakh crore to tax cuts, concessions

Govt loses Rs 4.18 lakh crore to tax cuts, concessions

New Delhi, Aug 7 (PTI) The government has incurred an estimated loss of about Rs 4.18 lakh crore due to tax rebates and exemptions in 2008-09.

Asked if tax rebates and other concessions to corporates and non-corporates would result in an estimated loss of Rs 4,18,096 crore, Minister of State for Finance S S Palanimanickam replied in the affirmative in the Lok Sabha.

However, the government would add about Rs 20,000 crore to its kitty, on account of the minimum alternate tax (MAT) that was raised from 10 to 15 per cent in the budget, Minister said in a written reply to another question in the Lok Sabha.

"The rate of minimum alternate tax has been increased from 10 per cent of the book profit to 15 per cent of the book profit with a view to progressively reduce the impact of tax exemptions/incentives," the Minister said.

Word Bank sanctions USD 330 mn loan for Haryana

Word Bank sanctions USD 330 mn loan for Haryana

New Delhi, Aug 7 (PTI) The World Bank today said it will lend USD 330 million to Haryana for strengthening power transmission and distribution system.

"World Bank has approved USD 330 million (Rs 1,650 approximately) to strengthen electricity transmission and distribution system in Haryana by way of Haryana Power System Improvement Project," the agency's statement said.

Haryana Power System Improvement Project aims to improve the availability, efficiency and accountability of electricity supply in the state.

The project will enable the state's electricity transmission and urban distribution business to become more efficient, cost-effective and responsive, it said.

India foreign reserves up 3.9 bn to USD 271.64 bn

Mumbai

Mumbai, Aug 7 (PTI) India's forex reserves rose by USD 3.930 billion to USD 271.641 billion for the week ended July 31 from USD 267.711 billion in the previous week.

Foreign currency assets (FCAs), during the week, jumped to USD 260.631 billion, up USD 3.974 billion, as compared to USD 256.657 billion in the previous week, the RBI data said.

FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies (such as Euro, Sterling, Yen) held in reserves, RBI said in its weekly report.

Gold reserves, during the period under review, declined by USD 129 million to USD 9.671 billion, as against USD 9.800 billion in the previous year.

The special drawing rights (SDR) stood unchanged at USD 1 million, the central bank said.

India's reserve position in the International Monetary Fund (IMF) rose by USD 85 million to USD 1.

NHPC IPO subscribed over 3 times

Date : Aug-07-2009

NHPC's initial public offering has been subscribed more than three times on the first day of the issue. As per the data available on the National Stock Exchange website, the issue has been subscribed 3.22 times. Till 2 pm, 167.73 crore shares issue received 539.94 crore bids. More than 2.45 crore bids were made at cut-off price. Most of the bids were received at the upper end of the price band, said the sources.

The company is offering shares of face value Rs 10 each in the price range of Rs 30 to Rs 36 per share. The company will raise Rs 5,032 crore at the lower end of the price band while at upper band it will raise Rs 6,039 crore. The 100% book build issue closes on August 12.

The company proposes to use the issue proceeds to part finance construction as well as development of hydro projects.